Overhead costfor producta activity cost pool a

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OverheadCostforProductAActivity CostPool(a)ActivityRate(b)Activity(a) × (b)ABCCostMachine-setups$100 per order100 setups$10,000Specialprocessing$15per design0Designs0Generalfactory$10 permachine-hour10,000 machine-hours100,000Total$110,000What is the productmargin of ProductA?$250,000$140,000$110,000$390,000Denny CorporationSales$9,000Direct costs:Direct materials$1,800Direct labor$1,350Activity CostPoolsTotal CostMachine-setups$20,000Special processing150,000
Special processing150,000General factory200,000Total overhead costs$370,000OverheadCostforDennyCorporationActivity CostPool(a)ActivityRate(b)Activity(a) × (b)ABCCostMachine-setups$100 setups20 setups$2,000Specialprocessing$15permachine-hour50MHs750Generalfactory$10 per directlabor-hour400 directlabor-hours4,000Totaloverhead costassigned tocustomer$6,750What is the customermargin for Denny Corporation?What conclusion can youdrawfromthis information?
LO 5-6 (Appendix 5A) Use time-driven activity-based costing toassign costs to cost objects.

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